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Loans

Car loans

Introduction

It is true — owning your dream car is a cherished dream. Here are some quick, easy loans that are tailor-made to take you to your dream drive. MoneyRaksha guides you through the choices and helps you take all the right steps… so you get the car that you want, through the best deal!

Loan eligibility

Your eligibility depends on your income, and the make and model of your car. Typically, banks loan you 80 per cent of the ex-showroom price of your car; it's a little flexible if you are the bank's customer. The monthly payment — EMI — will be around 50 per cent of your monthly income. That is a large slice, and it would mean that you manage your other expenses such as rent, food, utility bills, etc, with the other 50 per cent of your income. Therefore, while planning your EMIs, allocate enough for your home, so that you are not financially strained by your EMI payments.

Fees and charges

We help you navigate the fine print such as additional fees and charges, which vary from one institution to another. For example, the bank's processing fee is approximately one per cent of the loan amount, and it is generally capped. Also, if the loan is cleared earlier than planned, there is a foreclosure penalty of four per cent of the foreclosed amount.

Loan repayment

The repayment period varies between 1-5 years, depending on your loan policy and your loan amount. Do remember that the earlier you pay off the loan, the lesser is the interest you pay. It is, therefore, advisable to keep the duration of your loan repayment to a minimum time.

Loan documentation

We understand that getting together the right documents can be stressful. At MoneyRaksha, we help you cruise through this stage. Typically, you might require one or more of the following documents:

  • Proof of bank account
  • Identity proof
  • Income proof of 1-2 years
  • Residence proof

However, if you hold a fixed deposit account with the bank that you seek a loan from, your loan processing becomes much easier.

Compare loans

The extremely competitive car loan market has several players vying for your attention. It's ideal to compare various offers and choose a loan that best meets your needs.

  • First, check the interest value; make a note of terms and rates under various heads such as monthly reducing rate, flat rate, etc.
  • Then, take a look at the processing fee.
  • The total cost of your car loan is the loan amount + total interest charged throughout the loan tenure + processing fees and other taxes.
  • To figure out the cheapest loan, compare the total amount that you need to pay to completely pay off your car loan.
  • You also have to ask how long the bank takes to process the loan, especially if you want to drive the car home in a hurry!

The MoneyRaksha touch

At MoneyRaksha, we have all the information and expertise to help you negotiate a good deal. At every step of the process, we guide you to ensure a trouble-free transaction. You gain from:

  • The lowest interest rates.
  • Customised car loan quotes, in a jiffy!
  • Quick comparisons based on total loan cost, customer reviews, etc.
  • Comprehensive and objective information, with no fine print.
  • Complete privacy of your personal information.
  • No extra charges from MoneyRaksha.

My MoneyExpert

  • Type in your specifications in the eligibility calculator to receive your customised car loan quotes.
  • Compare the offers you receive and choose one that best suits your needs.
  • Your application is sent electronically to the bank you chose.
  • The bank contacts you directly, within one working day.
  • We, at MoneyRaskha, continuously update you on the status of your loan application with email and SMS alerts.

Car loan FAQs

Education loans

Introduction

A good education is the single most valuable gift you can bequeath your child. After all it's the very foundation on which his/her future is built. And when it comes to higher studies or specialisation in certain fields, you do need additional financial support from time to time. Sure, there are scholarships, but those are small in number, and only a lucky few can avail them.

Education loans step in to fulfill this need, to encourage your children to pursue higher education despite financial shortcomings. Whether it is towards a basic school education, a graduate or post-graduate degree in India, or to study abroad, education loans finance these ambitions and goals.

At MoneyRaksha, we understand that as a parent, you want to leave no stone unturned to ensure that your child gets the best. We, therefore, help you weigh all the available options, to get an education loan that not only covers the tuition fee, but also any other expense involved.

Loan eligibility

To avail an education loan, there are certain pre-requisites:

  • You and your child should be Indian nationals;
  • You should have a stable source of income;
  • Your child must secure admission to a professional/technical course through an entrance test or selection process;
  • Your child should have applied to a recognised university in India or abroad.

You can apply for an education loan for the following courses, in India:

  • Graduation courses — BA, B.Com, BSc;
  • Post-graduation courses — Masters and PhD;
  • Professional courses — engineering, medical, agriculture, veterinary, law, dental, management, computer, etc.;
  • Computer certificate courses from reputed institutes accredited to the Department of Electronics or institutes affiliated to a university;
  • Courses like ICWA, CA, CFA, etc.;
  • Courses conducted by IIM, IIT, IISC, XLRI, NIFT, etc.;
  • Courses offered by reputed foreign universities, in India;
  • Evening courses of approved institutes;
  • Other diploma/ degree courses conducted by colleges/universities approved by UGC/ Government/ AICTE/ AIBMS/ ICMS, etc.

The courses eligible for study abroad are:

  • Graduation — job-oriented professional/ technical courses offered by reputed universities;
  • Post-graduation — MCA, MBA, MS, etc.;
  • Courses conducted by CIMA - London, CPA in USA, etc.

The loan amount primarily depends on whether your loan is to finance studies in India or abroad. For studies in India, you can borrow up to Rs 4 lakh, without providing any security. However, for a higher amount, you need a third party guarantee.

For overseas study loans, amounts above Rs 7 lakh are given against fixed deposits, NSC certificates, or property worth the loan amount.

The loan covers tuition fee payable to the school/ college; library and lab fees; caution deposit or a refundable deposit sought by the institution, supported by bills and receipts; purchase of books and equipment; and travel expenses for studies abroad.

Fees and charges

While education loans are easily available from banks and financial institutions, you must understand the loan components and the accompanying fees and charges. These include:

  • A margin (down payment), like any other loan. This is a percentage of the amount and varies from 10-25 per cent and also depends on the loan amount.
  • A processing charge of one to 2.25 per cent on the loan amount; this fee is applicable on the application and is non-refundable.
  • A pre-payment fee if more than 25 per cent of the loan amount is paid within one financial year. However, most banks do not charge a pre-payment fee.
  • A late payment fee if there is a delay in the payment of your EMI.
  • Cheque bounce charges if the cheque bounces due to lack of funds in your account.

Loan repayment

The loan has to be re-paid within 5-7 years after commencement of the repayment. In case of education loans, there is a moratorium period i.e. a holiday on repayment, which is generally the course period plus one year or six months, after the student starts earning, whichever is earlier.

Loan documentation

Putting together documents is always a bit of a stress. Typically, banks require all or any of the following documents, along with the completed application form:

  • The mark sheet of the last qualifying examination, for school and graduate studies in India;
  • Proof of admission to the course;
  • Schedule of expenses for the course;
  • Copies of letter confirming scholarship, if applicable;
  • Copies of foreign exchange permit, if applicable;
  • Two passport-sized photos of the student;
  • Your bank account statement for the last six months;
  • Your income tax assessment order for the last two years;
  • A brief statement of your assets and liabilities;
  • If you are not an existing bank customer, you need to submit a proof of identity and residence.

Compare loans

Since the interest rates vary significantly from bank to bank, we advise that you compare all the offers before you find one that fits your needs. A few points that you need to consider:

  • Interest is normally calculated according to certain slabs. For instance, loans up to Rs 25,000 attract an interest of 12 per cent while loans from Rs 25,001 to Rs 2 lakh have an interest rate of 14 per cent. For loans greater than Rs 2 lakh, the interest would be 16 per cent. This is, of course, only a rough guide.
  • Check whether the interest is fixed or variable. While a nationalized bank may follow variable interest rates, private and foreign banks tend to offer fixed interest rates.
  • The interest on an educational loan starts immediately after the day of disbursal. Often, the interest is payable on a quarterly reducing basis, calculated on a simple interest basis. But once the repayment of the actual principal starts, the interest is calculated on a compounded basis.
  • Scan for other charges such as processing fees.
  • The total cost of your loan is the loan amount + total interest charged throughout the loan tenure + processing fees and other taxes.
  • To zero in on the cheapest loan, compare the total amount that you need to pay to completely pay off your loan.

The MoneyRaksha touch

We help you make an informed choice, absolutely free of cost. We offer:

  • The lowest interest rates
  • Quick, customised loans
  • Easy comparisons based on cost and customer satisfaction
  • Objective information, with no jargon or fine print
  • Complete privacy of your contact information
  • Neutral advice with no biases

My MoneyExpert

  • Fill in your requirement in the eligibility calculator to receive customised quotes
  • Compare the education loan offers you receive and select the one that fits your need
  • Mail in your application, which is forwarded electronically to the bank of your choice
  • The bank contacts you within one working day.
  • We, at MoneyRaksha, send you email and SMS alerts to keep you updated with the status of your application.

Education loan FAQs

Personal Loans

Introduction

Are you planning a holiday? Do you need financial assistance for marriage-related expenses? Do you want to indulge in the latest lifestyle gadget? Or are you simply in need of quick cash? Personal loans help you meet these or any kind of personal expenses.

However, you need to keep in mind that personal loans have high interest rates, making them the most expensive loans in the market. You, therefore, need to plan your loan and be careful while selecting it.

At MoneyRaksha, we provide an easy-to-use platform to review the various personal loans offered by banks and financial institutions. We guide you through the research and understanding of the costs and benefits involved and help you get the right personal loan that smoothens your cash flow and addresses your immediate needs.

Loan eligibility

A personal loan is an unsecured loan. This means that you don't have to provide the bank with any kind of security like property or jewellery against the loan. Personal loans can range from an amount of Rs 50,000/- to Rs 20 lakh.

The loan amount you are eligible for as well as the interest rate depends on factors such as your income and employment, residence, and credit history. Typically, the EMI is pegged at 50 per cent of your take home income, a rather high amount, which translates that you manage your other expenses like rent, food, etc with the remaining 50 per cent. Therefore, plan your personal loan so that you are not financially strained to pay your EMIs.

Fees and charges

When you choose a personal loan, you must make a note of the charges that are levied by the bank that determine the real cost. This includes:

  • A processing fee of two to three per cent of the loan amount, depending on your credit profile;
  • A foreclosure penalty of four per cent of the pre-closed loan amount if you repay your loan prior to the agreed time frame;
  • A late penalty ranging from two to three per cent of the EMI in case of delayed payment;
  • Cheque bounce charges for every bounced cheque submitted for the payment of the loan;
  • Documentation charges to verify your documents to process the loan application.

Loan repayment

Personal loans are short-term loans repayable over a period of one to five years.

Loan documentation

Since a personal loan is an unsecured loan, it can be accessed with minimal paperwork or documentation. You may need to submit the following documents to process your loan application:

  • An identity proof
  • Bank statements for three to six months
  • Salary slip

You may also need to provide guarantors. If you are self-employed, you may need to furnish additional documents like balance sheets, profit and loss accounts, partnership deed, etc.

Compare loans

It is easy to find banks that are willing to give you the money you need, whatever be your reason. But aside from their willingness, finding a good deal is not quite so easy. Here are some points to consider:

  • Since the interest rate is quoted in multiple ways — monthly reducing rate, flat rate, etc, check for the right interest value.
  • Scan through other charges like processing fees.
  • Compare the customer satisfaction ratings of each bank.
  • The total cost of your personal loan is the loan amount + total interest charged throughout the loan tenure + processing fees and other taxes.
  • Most importantly, check the turnaround time, which is the time taken by the bank to process your application. This is a critical factor as you generally apply for a personal loan when you need quick money.

The MoneyRaksha touch

At MoneyRaksha, we understand that picking the right personal loan can be hard. We, therefore, help you choose your loan wisely, so that you borrow only what you can afford to repay. We provide you:

  • The lowest interest rates;
  • Quick, tailor-made loans;
  • Easy comparisons on loan offers;
  • Objective information on your loan options;
  • Neutral advice;
  • Services at no extra cost.

My MoneyExpert

  • Type your requirements in the eligibility calculator.
  • Compare the loan offers you receive and apply for the one that suits your needs.
  • Your application is forwarded electronically to the bank you choose.
  • The bank contacts you within one working day.
  • MoneyRaksha sends you email and SMS alerts to keep you updated with the status of your application.

Personal loan FAQs

Home loans

Introduction

Buying a house is probably the biggest purchase you make in your life. Having your own home gives you tremendous stability and security, along with the freedom of personalising your living space.

Owning a home has many advantages. When you make a loan payment, you are building equity, and that is an investment. You also qualify for exemptions on your personal taxes.

However, home ownership means considerable efforts to ensure that the process moves as smoothly as possible. That's where MoneyRaksha steps in. We take you through the home loan roadmap, from start to finish, helping you make home-buying easier.

Loan eligibility

There are different types of home loans available today, catering to different borrowing needs. You can avail a:

  • Home purchase loan to finance the purchase of a new house;
  • Home improvement loan towards the renovation or repair of a house, which is already bought;
  • Home construction loan to finance the construction of a new home;
  • Home extension loan to expand an existing home;
  • Home conversion loan to transfer the existing loan to a new lender;
  • Land purchase loan to purchase land for construction.

Your loan eligibility depends on your income, savings history, stability of occupation, number of dependants, and the value of the property you wish to purchase. Typically, banks loan you 75-85 per cent of the value of your property. The monthly payment — EMI — is around 40 per cent of your monthly income.

Fees and charges

While acquiring a home loan, you must consider the accompanying charges and fees. At MoneyRaksha, we help you study the minute details, such as those outlined below, while comparing the cost structure across banks.

  • Banks levy a non-refundable processing charge — between 0.5 per cent and 1 per cent of the loan amount — at the time of submitting the loan application.
  • Some banks charge an administrative fee at the time of loan sanction.
  • If the loan is cleared earlier than planned, there is a foreclosure penalty, which is generally between 1-2 per cent of the foreclosed amount.
  • Banks may levy legal charges for legal and technical verification of the property.
  • If there is a delay in the payment of your EMI, the bank may charge a late payment fee, which normally ranges from two to three per cent of the EMI.
  • In case your cheque bounces due to lack of funds in your account, banks levy cheque bounce charges.

Loan repayment

Most banks offer home loans which can be repaid over a period of up to 20 years (15 years for NRIs).

Loan documentation

If you are applying for a home loan, you may be worried about the documents that you need to submit to secure the loan. We, at MoneyRaksha, verify your documents and check to make sure that they match the details that you have submitted with your loan application. Typically, you may need to submit:

  • An age proof;
  • An address proof;
  • An income proof;
  • A bank account statement for the last six months;
  • Your passport-size photographs.

In addition, banks ask for specific documents, depending upon your employment status. If you are a salaried individual, you may need to submit:

  • An employment certificate from the employer;
  • Copies of pay slips for last few months and the TDS certificate;
  • Latest Form 16 issued by your employer;
  • Bank statements.

If you are self-employed, you need to provide:

  • A copy of the audited financial statements for the last two years;
  • A copy of the partnership deed if it is a partnership firm or a copy of the Memorandum of Association and Articles of Association if it is a company;
  • The profit and loss account for the last few years;
  • The income tax assessment order.

Compare loans

With competing home loan schemes offered by banks and lending institutions, you may be at a loss, as to which product to opt for. We advise that you compare all the offers before you find one that fits your needs. A few points that you need to consider:

  • Banks quote interest rates in several ways — monthly reducing rate, flat rate, etc. Make sure you identify the right interest rate value.
  • Scan for other charges such as processing fees.
  • Compare the customer satisfaction ratings of each bank. This is important as you need to work with the bank for the entire period of your loan.
  • The total cost of your home loan is the loan amount + total interest charged throughout the loan tenure + processing fees and other taxes.
  • To zero in on the cheapest loan, compare the total amount that you need to pay to completely pay off your home loan.

The MoneyRaksha touch

At MoneyRaksha, we help you make an informed choice with all the facts at your fingertips. We offer:

  • The lowest interest rates;
  • Quick, customised loans;
  • Easy comparisons based on cost and customer satisfaction;
  • Objective information, with no jargon or fine print;
  • Complete privacy of your contact information;
  • Neutral advice with no biases;
  • Free services.

My MoneyExpert

  • Fill in your requirement in the eligibility calculator to receive customised home loan quotes.
  • Compare the home loan offers you receive and select the one that fits your needs.
  • Your application is forwarded electronically to the bank you chose.
  • The bank contacts you within one working day.
  • We, at MoneyRaksha, send you email and SMS alerts to keep you updated with the status of your application.

Home loan FAQs

Loans against property

Introduction

There are times when you require a loan to finance a dire need or tide over a cash crunch. At these times, your property can be a suitable security to structure your loan and meet your requirement.

Loans against property give you access to finance, on the basis of the property you hold. You don't have to worry about loan applications being rejected or too many questions from the bank or financial institution. And again, there are no restrictions on the purpose for which the loan can be used — marriage expenses, children's education, travel costs, or home renovation — you can use this loan for almost anything since it has a sound security backing it.

However, as with other loans, you do need to traverse through some paperwork. And that's where MoneyRaksha steps in to make the process smoother and easier for you.

Loan eligibility

The loan amount ranges from Rs 2 lakh to Rs 1 crore, depending on your income, savings, debt obligations, value of the property, and of course, your repayment capacity and track record. The loan amount comprises a certain percentage of the market value of the property; the maximum amount you can borrow is generally 70 per cent of the market value of the property. This could vary depending on whether the property is a commercial or residential one. Also, remember that most banks do not accept properties that are on lease or those that are based on a power of attorney.

Fees and charges

While this multi-purpose loan can be easily availed, make sure you scan through the fees and processing charges that accompany the loan. This may include:

  • A processing fee of 0.05 per cent to three per cent of the loan amount, which has to be paid up front. However, this fee is deducted from the loan amount disbursed to you.
  • Pre-payment charges that may be levied according to the foreclosed amount.

Loan repayment

Loans against property have to re-paid within a maximum period of 20 years depending on the loan amount and your individual capacity. It is important to note that if you are unable to pay the full loan amount, the bank or financial institution can take possession of your property. Therefore, be wise when you make your decision.

Loan documentation

In addition to the standard documents such as identity and residence proof, income proof, and bank account statements, a loan against property would require you to submit one (or more) of the following documents (as applicable):

  • Allotment letter from the cooperative society;
  • Agreement for sale/ sale deed for the property;
  • Original title deeds of the property;
  • Latest paid receipts of maintenance, water, tax, etc;
  • A non-hindrance letter from the cooperative society.

Compare loans

If you do qualify for a loan against property, it is certainly preferable as it offers a longer tenure for repayment, a lower interest rate, and a variety of repayment options. However, we do advise that you compare loan offers before choosing one gives you maximum benefits and serves your purpose. You must check for:

  • The right interest value, amidst different interest rates such as monthly reducing rate, flat rate, etc.;
  • Various charges such as processing fees;
  • The customer satisfaction ratings of each bank;

The total cost of your loan is the loan amount + total interest charged throughout the loan tenure + processing fees and other taxes.

The MoneyRaksha touch

When you choose to make use of the power of your property to raise money for your requirements, we, at MoneyRaksha, help you make an informed choice. We seek to give you:

  • The lowest interest rates;
  • Quick, customised loans;
  • Easy comparisons based on cost;
  • Objective information, with no fine print;
  • Complete privacy of your contact information;
  • Free services.

My MoneyExpert

  • Fill in your requirement in the eligibility calculator to receive a customised loan against property quote.
  • Compare loan offers you receive and select the one that serves your purpose.
  • Your application is forwarded electronically to the bank you chose.
  • The bank contacts you within one working day.
  • MoneyRaksha sends you email and SMS alerts to keep you updated with the status of your application.

Loan against property FAQs